Wolfspeed (WOLF) Says AI Data Center Revenue More Than Doubled. Can it Restore Positive Gross Margins?

Wolfspeed's shares fell 9.4% to $26.35 after reporting a fiscal fourth-quarter. Revenue hit $149.6 million, while the company posted a $145.4 million GAAP net loss and a $62.4 million adjusted EBITDA loss. AI data center revenue more than doubled in fiscal 2026 compared to fiscal 2025, and increased 20% sequentially in the latest quarter.

Total revenue remained near $150 million for two consecutive quarters, indicating AI growth has not yet boosted overall sales. Wolfspeed holds potential in expanding beyond electric vehicles, as silicon carbide can enhance power density and efficiency in high-voltage data center systems. The company launched a dedicated data center solutions team, introduced a fifth-generation silicon carbide MOSFET, and partnered with LITEON on 800-volt DC power platforms.

These moves could become material if design activity translates into high-volume orders. As of June, Wolfspeed had $1.09 billion in cash and short-term investments. However, the company still faces manufacturing-economics challenges, with GAAP and non-GAAP gross margins both remaining negative. The company issued $46 million of notes during the fourth quarter and has reserved approximately 70.8 million shares for potential issuance.

Hedge funds hold positions in Wolfspeed, but the stock remains speculative until gross-margin recovery is visible and sustained.